USDA B&I Loans

The USDA B&I Loan program is designed to provide a government guarantee on rural development loan requests. The guarantee can be up to 80% of the loan amount. Loan proceeds can be used for equipment, buildings, construction, working capital and other business related needs. In order for the loan to qualify as “rural” the population of the city in which the loan proceeds will be utilized must be less than 50,000 on the previous census. Terms can be 7 years for working capitial, 15 years for equipment and 30 years for real estate.

Currently the Hoffman Consulting Group is utilizing a USDA guarantee to lend on a start up new construction assisted living facility. This loan program has given the lender an ability to get the loan done that SBA and traditional financing would not. The 80% guarantee has allowed the lender to originate a larger loan than is normal for their portfolio as well.

It’s all about getting the loans done in any economic cycle. The USDA B&I Loan program provides another tool in our box to help your business succeed.

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